Abdul Karim, who traded as Monopoly@States in Hornchurch, applied for a Â£480,000 ($784,323) mortgage. He claimed to have an annual income of over Â£100,000 but simultaneously declared a salary of Â£30,000 to HM Revenue & Customs.
The FSA said that as the amount applied for was 16 times his declared income, Mr Karim must have known the application would not meet lending criteria and he therefore knowingly declared a false income in an attempt to obtain the loan.
Mr Karim has been banned from performing any function relating to regulated activity carried out by an authorized person on the grounds that he lacks honesty and integrity. The regulator has also cancelled the permission of Monopoly@States to operate as a mortgage broker.
FSA enforcement director Margaret Cole said: "We have banned over 50 brokers in the last three years and 2009 will see more prohibitions for those involved in mortgage fraud."